Firm A has before tax cost of debt of 5% and Firm A has a 20% tax rate. Group of

Firm A has before tax cost of debt of 5% and Firm A has a 20% tax rate.
Group of answer choices
The after tax cost of debt is 4%.
There is tax savings when Firm A borrows since interest payments are tax deductible.
The tax savings from issuing debt is 1%.
There is no tax savings when Firm A issues stocks since dividend payments are not tax dedu